French government allocates €2 billion to support the creative sector

By Emmanuel Legrand

The French creative community has welcomed the announcement from Prime Minister Jean Castex to allocate €2 billion to the cultural sector as part of the country's €100bn recovery plan. "We believe that culture is an economic activity," said Castex, whose government identified the cultural sector as one of the ten core businesses in France that needed urgent economic support. 

  The purpose of the €100bn stimulus package is to "recreate the conditions for more robust, innovative, ecological and inclusive economic growth, by supporting the sectors most affected by the crisis, in particular tourism, sport and culture." 

  Part of the plan is to incite people to go back to movie houses, theaters and concert venues while respecting safety measures such as wearing of a mask. "We will make the systematic wearing of a mask compulsory," said Castex. However, the PM did not sanction an unconditional re-opening of venues and festivals. "Culture, sport, tourism, events, will retain access to partial activity until the end of 2020, when an assessment will be made," said Castex.

An unprecedented effort  

  Out of the €2bn, the film industry will receive €165m through the National Cinema Center (CNC), with €60m to cover a downfall in CNC's budget normally financed by a tax on cinema tickets, and €105m to be spread across various recovery initiatives throughout the whole film and TV industry chain. The French cinema theater sector is estimated to have lost some €500m in revenues since the start of the pandemic, according to Richard Patry, the president of the French exhibitors’ association (FNCF). 

  The bulk of the funding will go to the live and performing arts sectors (theaters, dance, music, among others). Castex and the Minister of Culture Roselyne Bachelot (pictured, below) met the representatives of the performing arts sector on August 28 and outlined specific measures such as the opening of venues, although the attendance level for for cultural and sporting events is set at 5,000 people, maximum, which rules out most festivals. 

  Bachelot said €432m will be allocated to support live entertainment, with €220m for the commercial sector, €200m for the subsidised sector and €12m for creators. The €220m for the commercial sector will be split as follows: €200m in credits for the music sector as a whole, the will be channeled through the newly created Centre National de la Musique (CNM), €10m allocated directly to the CNM to strengthen the organisation, and €10m for non-subsidised theaters. In addition, a €100m fund has been set up to compensate venues for their operating losses during the pandemic. Bachelot said it was "an unprecedented effort that I will lead to save a devastated sector."  

  Castex also announced that the government would be extending the tax credit for performing arts and the tax credit for phonographic production until the end of 2024, as well as a temporary relaxation the live sector tax credit conditions. 

A proactive plan

  The three main organisations representing the live sector (PRODISS, SNDTP and CAMULC) said the government plan gave "hope for a way out of the crisis." They added: "The sector had assessed it needed up to of €300m. We therefore salute the effort and the strong commitment of the Government, which will allow entertainment companies throughout France to reduce the risks of bankruptcy and start the recovery.” 

  The organisation for contemporary music SMA welcomed "the proactive plan in favor of the live sector," stating that its members would be "present to work on the implementation of these announcements in conjunction with the teams from the Ministry of Culture and the Prime Minister." 

  Independent record labels' body UPFI said the overall plan provided "structuring measure for the entire value chain." The extension of the music tax credits until 2024 "brings welcome visibility to production companies, allowing them to initiate investments that have recently been weakened by the reduction of their income in 2020." UPFI also welcomed the extra allocation of €210m to the CNM.